Timely Real Estate News………………………………………………….15 June, 2007
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The Joys of Following The Media…..
Waking up to the Los Angeles Times and watching TV or the listening to the radio is some times like waking up in another country. I hear where ”..Homes sales are down 34% in region”….. “Confusion reigns for borrowers in latest study”. Never a dull moment…….real estate is the tragedy du jour, the convenient whipping boy for slow news days.
So, if you’re confused, let me try to bring some clarity to the headlines floating around the Southland, especially about the Westside. Yes, home sales are down an average of 34% in Southern California’s six counties, but if you look at home prices in the $1.1 million-plus range, sales are only down 1.2% and just 13% for homes of $746,000 to $1.100,000 (and that’s for all six counties). The median sales price for homes in my primary communities of Beverly Hills, Bel Air, and Brentwood is $3.07 million (based on median sales price for May 2007). And the biggest ‘hits’ in falling home prices are taking place in Riverside and San Bernardino counties….no surprise if you have witnessed how these two areas have been suffering the past six months.
Here on the Westside, there is some good news about home prices. For example, Brentwood enjoyed a 16% increase in the median sales price for May 2007 over same period last year (Days on market was 103) according to the Beverly Hills-Los Angeles Multiple Listing Service (MLS)….Bel Air was up 27% for the same statistical period (DOM was 69)…and Beverly Hills was down 27% (DOM — 86) over last year, which last showed a significant increase in sale prices in March. The point is…that we live in a micro-climate of real estate where median sales prices do fluctuate from month to month, but overall, we are living in a very attractive, strong market that continues to demonstrate its price resiliency over the long haul.
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Home Borrowers Baffled by Loan Docs……
Here’s another interesting tidbit from the Los Angeles Times…about a study of home borrowers conducted by the Federal Trade Commission with respect to loan disclosures: *Half of borrowers couldn’t identify the loan amount….*9 out of 10 couldn’t figure out the total upfront cost of a loan….*2/3’s didn’t realize they had to pay a penalty if they paid off the loan within 2 years…*3/4’s didn’t know if substantial insurance costs were included in the loan…and * 20% didn’t have a clue about the annual percentage rent they were paying for the loan or even if the payment included taxes and insurance. What??? If this is true, perhaps you should take a moment and think about exactly “what do you know about your own loan.”
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Sepulveda Pass Meeting Draws Nearly 400…..
There were moderate fireworks at last Monday’s meeting held at Skirball on the Sepulveda Pass’s future plans for a variety of road work projects. Brentwood Glen residents were out in force with placards and loud, but reasoned, voices to protest the potential tearing down of homes in their neighborhood to make room for the increased lanes on the 405 with the addition of the car pool lanes….confusion reigned because the EIR (environment impact reports) were in-correct and left out a great deal of information. …the final cutoff date for public comments (scheduled for July 17) is now moved back to some time in August or September but only after the mandatory re-issuance of the revised EIR is completed. When will it be finally done? — “…we’ll get back to you.” There was a lot of discussion by the panel, composed of representatives from LA City, Caltrans, and LA County, about widening the 405 to include a carpool lane…but nothing was said at all about the reversible lane on Sepulveda, which is the first project to be done. . In other words, many walked away feeling short-changed. The EIR and other studies require major overhaul to bring them up to speed….and when that will be done? We’ll get back to you!
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On a personal note….I am off to my niece’s high school graduation next week in the beautiful city of Vancouver, British Columbia… perhaps I will include some photos in my next SchifferLine.
Talk to you soon.
